STOCKHOLM (Reuters) – Hexagon AB said on Thursday that overall demand was strong while supply of some components was strained, after the industrial technology group reported quarterly earnings in line with market expectations.
The Swedish maker of measurement and positioning systems and software said it had seen continued strong demand in surveying, mining, infrastructure and construction.
Hexagon reported a like-for-like sales rise of 10% with China, mainly driven by continued strong demand in manufacturing and in Europe, the Middle East and Africa, the company’s biggest region by net sales, both recording growth of 10%.
Chief Executive Ola Rollen said that with unrestricted supply, the company would have increased sales by another 2%.
“We believe that we will see a similar situation in the fourth quarter, with a further increase in backlog, but envision a gradual improvement in components supply in the first half of 2022,” he said in a statement.
Hexagon’s third-quarter adjusted operating profit (EBIT) rose to 297 million euros ($344.5 million) from 250 million a year earlier, matching a 297 million mean analyst forecast in a Refinitiv poll.
Hexagon’s sensors and software are used for measurement and quality inspection in manufacturing processes and engineering plant design, as well as in infrastructure planning, construction, mining, agriculture and energy.
($1 = 0.8621 euros)
(Reporting by Helena Soderpalm; editing by Niklas Pollard)
